Willis Lease(US:WLFC)2024-11-04 19:29Financial Performance - Total revenue for the nine months ended September 30, 2024, was $416,426,000, a 36.8% increase from $304,275,000 in the same period of 2023[11]. - Net income for Q3 2024 was $24,096,000, compared to $14,618,000 in Q3 2023, representing a 64.8% increase[12]. - Basic weighted average income per common share for Q3 2024 was $3.51, up from $2.16 in Q3 2023, reflecting a 62.6% increase[11]. - Total comprehensive income for Q3 2024 was $18,740,000, compared to $11,631,000 in Q3 2023, reflecting a 60.7% increase[12]. - Net income for the nine months ended September 30, 2024, was $87,551 million, a significant increase from $32,828 million in the same period of 2023, representing a growth of 166%[19]. Revenue Breakdown - Lease rent revenue for Q3 2024 reached $64,905,000, up 21.1% from $53,573,000 in Q3 2023[11]. - Maintenance reserve revenue for Q3 2024 was $49,760,000, a 32.0% increase from $37,696,000 in Q3 2023[11]. - Spare parts inventory rose to $74,089, up from $40,954, indicating an increase of about 80.9%[8]. - Spare parts and equipment sales increased significantly by 223.4% to $10.9 million for the three months ended September 30, 2024, compared to $3.4 million in the same period of 2023[107]. Assets and Liabilities - Total assets increased to $3,043,593 as of September 30, 2024, compared to $2,652,344 as of December 31, 2023, representing a growth of approximately 14.7%[8]. - Total liabilities increased to $2,462,779 as of September 30, 2024, compared to $2,163,417 as of December 31, 2023, reflecting a rise of about 13.9%[8]. - Debt obligations rose to $1,990,455 from $1,802,881, marking an increase of approximately 10.4%[8]. - Shareholders' equity increased to $517,761 as of September 30, 2024, compared to $438,963 as of December 31, 2023, representing a growth of about 18%[8]. Cash Flow and Investments - Cash provided by operating activities for the nine months ended September 30, 2024, was $216,440 million, compared to $168,980 million in 2023, indicating a 28% increase[19]. - Cash used in investing activities was $454,959 million for the nine months ended September 30, 2024, compared to $132,146 million in 2023, indicating a significant increase in investment activity[19]. - Cash flows provided by financing activities were $175.6 million for the nine months ended September 30, 2024, reflecting $518.9 million in debt proceeds, offset by $331.2 million in principal payments[142]. Expenses - Total expenses for the nine months ended September 30, 2024, were $301,426,000, an increase of 17.4% from $256,837,000 in the same period of 2023[11]. - General and administrative expenses for Q3 2024 were $40,037,000, up from $26,545,000 in Q3 2023, indicating a 50.8% increase[11]. - Stock-based compensation expense increased to $18,351 million for the nine months ended September 30, 2024, up from $10,670 million in 2023, reflecting a 72% rise[19]. Debt and Financing - The Company entered into a new $1.0 billion revolving credit facility on October 31, 2024, refinancing its previous $500 million credit facility[45]. - The Company had $616.9 million of variable rate borrowings as of September 30, 2024, compared to $353.0 million as of December 31, 2023[49]. - The principal repayment schedule for total debt obligations indicates $473.8 million due in 2025 and $822.4 million due thereafter[48]. Joint Ventures and Investments - The Company recorded income from joint ventures of $7.255 million for the nine months ended September 30, 2024, compared to $7.255 million for the same period in 2023[41]. - The joint venture WMES owned a lease portfolio of 49 engines with a net book value of $335.5 million as of September 30, 2024[38]. - WMES reported revenue of $56.5 million for the nine months ended September 30, 2024, a 61.5% increase from $34.999 million in the same period of 2023[42]. Taxation - Income tax expense for the three months ended September 30, 2024, was $10.4 million, compared to $5.7 million for the same period in 2023, reflecting an increase of 82.5%[56]. - The effective tax rate for the three months ended September 30, 2024, was 30.1%, up from 28.1% in the same period of 2023[56]. Future Outlook - The company is actively monitoring the impact of high interest rates and inflation on its operations and financial condition, indicating a cautious outlook for future performance[6]. - The company believes its equity base and existing debt facilities are sufficient to maintain operations for the next twelve months, but internal funds could decline if off-lease equipment increases[153].